82. On March 1, 2013, S and P formed a partnership with each contributing the following assets. * Cash P30,000 P70,000 Machinery and equipment Building Furniture and foxtures 25,000 75,000 225,000 10,000 The building is subject to a mortgage loan of P80,000, which is to be assumed by the partnership. The partner agreement provides that S and P share profits and losses 30% and 70%, respectively. On March 1, 2013 balance in P's capital account should be: A. P290.000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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